EFW REPORT

EFW REPORT

2016

The EFW index now ranks 159 countries and territories. Data are available for approximately 100 nations and territories back to 1980, and many back to 1970. This data set makes it possible for scholars to analyze the impact of both cross-country differences in economic freedom and changes in that freedom across a time frame of three and a half decades.

2015

The EFW index now ranks 157 countries and territories. The nations added this year are: Bhutan, Guinea, Libya, and the Seychelles. Data are available for just over 100 nations and territories back to 1980, and many back to 1970. This data set makes it possible for scholars to analyze the impact of both cross-country differences in economic freedom and changes in that freedom across four decades.

2014

Global economic freedom declined slightly on the average chain-linked EFW rating, showing that it still faces many challenges across the world. Hong Kong and Singapore remain securely at the top of the index, whilst at the rear come Algeria, Argentina, Zimbabwe, Republic of Congo and Venezuela. The United Kingdom and United States are tied at 12th. Once again, the United States’ declining economic freedom poses a risk to its future growth.

2013

The average chain-linked EFW rating reveals that since 2009 global economic freedom has increased, albeit at an extremely low rate. It still remains the 2007 high of 6.92. This increase has not been universal though – the United States has continued to slip in all five areas of the EFW index. Interesting trends globally can also be observed: the strengths of high-income industrial economies has been their legal systems, sound money and international trade and their weakness have been in size of government and regulation. Developing countries perform better in size of government but fall in rule of law and property rights.

2012

2012 marks the 100th anniversary of Milton Friedman’s birth – as debate rages between proponents of economic freedom and those of Keynesian economics over how to respond to the 2008 financial crisis, his ideas are perhaps more relevant than ever before. The link between economic freedom and economic growth, higher income levels and poverty rates remains sound, yet the United States in particular has continued to fall in its ranking.

2011

Globally, economic freedom has continued to fall in the aftermath of the 2008 financial crisis. This decline has been led by the world’s largest economy, the United States, which saw one of the largest declines in economic freedom over the last ten years and moved down to tenth place. This was the result of increased government spending and borrowing together with lower scores for legal structure and property rights. Other countries, such as Venezuela, Zimbabwe and Malaysia also fell eight-tenths of a point or more between 1990 and 2009.